Some weeks ago, the Spanish Ministry of Public Works published facts and figures which show that during the first term of 2019 the price of housing has increased 4,4%. A similar situation only took place in the fourth term of 2007, during the housing bubble, when housing price rose up to 4,8%. These facts strike us, especially if we take into account that between 2008 and 2014 housing prices in Spain dropped term after term. The year 2015 became the tipping point regarding the evolution of Spanish real estate. From then on, real estate prices escalated and have continued thus till today. Moreover, housing in Spain has undergone a price increase during the last sixteen terms. Nevertheless, according to experts on the matter, there are no expectations for a large price increase at the end of 2019. Most analysts agree on the fact that only a moderate price increase will take place this year.

AN INCREASE IN PROPERTY DEALING

According to the Ministry of Public Works, the current prices of Spanish real estate cannot be equated with the times of the housing bubble, even though there is an analogy between the first term of 2019 and the fourth one of 2007. For instance, if we compare facts and figures with the year 2008, we see that the maximum housing price was 22% higher than at present. Nowadays in Spain, the price per square metre, in absolute terms, is an average of 1.636 €. If we take as a reference the year 2008, when the real estate bubble burst, we find that current prices are the second highest we have ever had and only below the year 2012. Moreover, if we take into account property dealing, we see that it has increased more than 2% (exactly 2,2%) during the first term of this year. We have to go back to 2008, in order to find a term where even more property dealings took place. In the first term of 2019, 138.422 sales were materialized. In any case, at the end of 2018,  property dealings increased slightly more than 9%, which was the lowest rise since 2012.

FACTS AND FIGURES BY COMMUNITIES

If we pay attention to each different Autonomous Community, we can see that in the first term of 2019, they all underwent a housing price increase except Extremadura where prices dropped 1,6%. The highest rise took place in the Community of Madrid, reaching 8,3%. Next, Navarre with 7% after, Catalonia ( 5,9% ), and the Balearics ( 5,1% ). Regarding municipalities, the most expensive one in which to purchase property is San Sebastian with a price of 3.520€ per square metre. Next comes Ibiza ( 3.423€ per square metre ) and after Barcelona ( 3.380€ per square metre ). As for Madrid, the average housing purchase price is 3.240€ per square metre. With regard to the number of property dealings, Andalusia comes first ( 27.208 deals ), Catalonia ( 22.003 deals ), the Community of Valencia ( 20.585 deals ) and lastly Madrid ( 19.745 deals ).